Reuters — Teva Pharmaceuticals (NYSE:TEVA) and Royal Philips (NYSE:PHG) are together investing up to 100 million shekels ($26.5 million) over 8 years in medical device and health technology startups in Israel.
The joint venture, called Sanara Ventures, said today it had already invested in 2 companies: Kaleidoscope Medical, which developed a system for X-ray radiation shielding during catheterization procedures; and MGD, which is creating a portable device for measuring lung function in patients with chronic obstructive pulmonary disease.
Sanara CEO Assaf Barnea said it had made another 2 investments that could not yet be disclosed, and that 2 or 3 more were expected by the end of the year.
“We see Sanara Ventures as a strategic way for Philips to tap into new developments in the health technology industry,” Philips CEO Frans van Houten said.
Erez Vigodman, his counterpart at Israel’s Teva, the world’s biggest generic drugmaker, said the healthcare industry was being transformed as consumers devote more time and money to staying healthy, rather then just waiting to treat an illness.
“That is driving the space. It means we can’t confine our business model to finding a new chemical entity,” Vigodman told a conference to launch Sanara. “We need branded and generic drugs, medical devices and diagnostic capabilities.”